Financial Performance - Production revenue for the year ended December 31, 2024, was CAD 4.968 million, a decrease of 63% compared to CAD 13.561 million in 2023[8]. - The company reported a net operating loss of CAD 8.619 million for 2024, compared to a loss of CAD 1.496 million in 2023, representing a 476% increase in losses[10]. - The company reported a net loss of CAD 20.267 million for the year, compared to a loss of CAD 21.146 million in 2023[10]. - The company generated production revenue of CAD 4.968 million in 2024, a decrease of 63.4% compared to CAD 13.561 million in 2023[53]. - The operating net income for the year ended December 31, 2024, was a loss of CAD 8,619,000, representing a 476% increase in losses compared to CAD 1,496,000 in 2023[135]. - Adjusted EBITDA for the year ended December 31, 2024, was a loss of CAD 10,073,000, which is a 213% increase in losses compared to CAD 3,221,000 in 2023[136]. - The company reported a significant decrease in royalty expenses, down 92% to CAD 88,000 for the year ended December 31, 2024, from CAD 1,084,000 in 2023[135]. - Total comprehensive loss for the year ended December 31, 2024, was CAD (20,267) thousand, a 4% improvement compared to CAD (21,146) thousand in 2023[87]. Production and Operations - The average daily sales volume for the year was 631 barrels of oil equivalent per day, down 62% from 1,676 barrels in 2023[10]. - Natural gas production was temporarily halted from May to October 2024 due to weak commodity prices, with production resuming in November[14]. - The average daily production of natural gas was 3,295 million cubic feet per day in 2024, down from 9,053 million cubic feet per day in 2023[10]. - The total production of oil equivalent decreased to 617 barrels per day in 2024, a decline of 62.5% from 1,646 barrels per day in 2023[53]. - The company expects to resume full natural gas production by the end of January 2025, anticipating a recovery in natural gas prices[59]. - The company plans to fully resume production by January 2025 and maintain maximum output throughout the year, anticipating a rise in natural gas commodity prices[15]. - The total proven reserves as of December 31, 2024, were 3.538 million barrels of oil equivalent, a decrease from 3.800 million barrels in 2023[12]. - The company's total production has been declining over the past five years, with a significant drop in natural gas production due to historical low prices and operational shutdowns[54]. Assets and Liabilities - Total assets decreased to CAD 25.888 million in 2024 from CAD 35.508 million in 2023[9]. - Net debt increased to CAD 47,815 thousand as of December 31, 2024, compared to CAD 37,387 thousand in 2023, reflecting a significant rise in financial obligations[91]. - The company's asset-to-debt ratio increased to 181% in 2024 from 117% in 2023, indicating a higher level of leverage[91]. - As of December 31, 2024, the company's working capital deficit was CAD 16.3 million, with total borrowings from the CMG and Jixing loans fully drawn at $11.5 million[98]. Financing and Capital Expenditures - The company completed a share placement, issuing 63 million shares at prices of HKD 0.22 and HKD 0.24, raising a total of CAD 2.5 million[14]. - The company issued convertible bonds amounting to USD 1.6 million, approximately CAD 2.18 million, with a 12% interest rate[14]. - The company signed a CAD 1.5 million convertible bond agreement with a 9% annual interest rate, maturing on December 10, 2025[48]. - Capital expenditures for 2024 were CAD 119,000, significantly lower than CAD 538,000 in 2023[53]. - The company is actively seeking additional financing opportunities, including alternative debt arrangements and joint ventures, to improve liquidity and manage capital expenditures[131]. Strategic Initiatives and Market Expansion - The company plans to enter two new markets in Asia by the end of 2025, aiming to increase its market share by 20%[42]. - The company is investing CAD 5 million in new product development, focusing on renewable energy technologies[42]. - The company recognizes the growing global demand for liquefied natural gas and cryptocurrency mining, leveraging natural gas for power generation in mining projects[16]. - The company aims to maximize future returns by maintaining a strategy of retaining production reserves to balance any revenue losses due to commodity price fluctuations[15]. Governance and Corporate Culture - The board has established a framework for identifying and managing key risks, with annual reviews of the internal control system's effectiveness[129]. - The company’s internal controls over financial reporting (ICFR) were deemed effective as of December 31, 2024, with no significant changes impacting financial reporting controls[128]. - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding independent director appointments[151]. - The company has established a corporate culture framework that emphasizes operational efficiency and effective well layout and field development to create shareholder value[148]. - The board has delegated daily management and operational responsibilities to senior management while overseeing strategic decisions and business performance[149]. Environmental and Social Responsibility - The company aims to achieve carbon neutrality by 2030, aligning with global sustainability goals[42]. - The company is committed to transparent and responsible operations in the communities where it operates, amidst increasing scrutiny on hydraulic fracturing technology[133]. - The company is facing potential increased costs due to new environmental regulations affecting the oil and gas industry, which may impact operations[133]. Employee and Director Compensation - The total employee compensation for the year ending December 31, 2024, was CAD 1 million, including CAD 390,000 in severance pay, compared to CAD 1 million in 2023[124]. - The remuneration for the CEO is set at CAD 330,000 (approximately HKD 1,914,153) annually, determined by the board based on various factors[167]. - Personnel costs increased by 32% year-over-year to $904,000, while board fees rose by 77% to $154,000[75]. Audit and Risk Management - The Audit and Risk Committee held four meetings during the year ending December 31, 2024, with attendance as follows: Chairman Hong Jiaxi (4/4), Kong Zhanpeng (0/4), Larry Grant Smith (4/4), and Chairman Du Jiewen (0/0)[195]. - The committee reviewed the company's final performance for the fiscal year and the audit report prepared by the external auditor regarding key accounting issues and findings during the audit process[199]. - The company has appropriate arrangements for employees to confidentially raise concerns about potential misconduct in financial reporting and internal controls[199].
吉星新能源(03395) - 2024 - 年度财报